Lydian is listed on the Toronto Stock Exchange. The current major shareholders are Newmont Mining Corporation (12.9%), IFC (12.9%) and Peter Mullens (5.4%).

The capital expenditure for 2009 for the investment program in exploration, feasibility studies and project assessments is estimated at approximately $5 million.

The proposed IFC investment is a Euro 1.0 million equity investment with matching warrants.

1.28 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	1.28

* These investment figures are indicative

Lydian International Limited’s (Lydian or the Company) is a junior mining company focused on exploration projects in Eastern Europe and Central Asia. Lydian currently holds licenses for the Amulsar exploration stage property in Armenia and the Drazhnje and Crepulje exploration stage properties in Kosovo. Amulsar is located in central Armenia, approximately 120km south of Yerevan. Drazhnje is located in north-eastern Kosovo, approximately 35km north-east of Pristina. Crepulje is located in north-western Kosovo, approximately 17km west of Mitrovica. Amulsar is a new discovery whereas the Crepulje and Drazhnje projects were previously explored during Yugoslav times. Current and planned future exploration activities mainly comprise continued surface drilling at Amulsar and Crepulje and the opening up and rehabilitation for mapping, sampling and drilling purposes of already existing underground exploration development at Drazhnje. The proposed additional investment by IFC will primarily fund the Company''s activities in Armenia.

The proposed IFC investment will contribute to continued exploration and associated feasibility studies for the company’s main assets. The direct development impacts during the exploration and feasibility study stage are expected to be small. Because the investment predates any feasibility studies, it is not yet possible to fully quantify or specify the potential development impacts during production stage. Potential development impacts at the mine production stage could include employment, foreign currency generating exports, and taxes and royalties at the federal, regional and local levels.

IFC will continue to play a proactive advisory role with regard to community relations, governance, linkages with the local business community and achieving best practice environmental and social standards. IFC will help the company build its internal environmental and social management capacity and implement its projects in line with international best practice

The key environmental, social and occupational health & safety and community aspects and issues associated with this project include:

Corporate level:
- Social & environmental management including proper baseline conditions assessment ;
- Labor & working conditions; and
- Community health, safety & security.

Project level:
- Exploration activities: dust and noise control, water management including drainage, drilling pads and access roads rehabilitation, use of forested and agriculture land for exploration and development, occupational health and safety, visual impacts and community safety; and
- Surrounding communities: traffic, land acquisition and economic displacement; and emergency preparedness & response.

Future projects may have impacts on biodiversity, human populations or cultural property – this will be assessed on a case by case basis after baseline work is completed. Documentation relating to social and environmental baseline, social and environmental assessment (“SEA”) and community engagement and consultation will be done in line with PS requirements

Lydian has prepared a comprehensive set of documents and agreed to an Action Plan that address corporate and local HSEC management and potential key environmental and social impacts during exploration. It is aimed at developing best practice and will demonstrate that during both the exploration and development of projects, these greenfield mining projects will be in compliance with the environmental, labor, health and safety regulations respectively of Kosovo and Armenia as well as international good practice under the guidance of IFC Performance Standards.

For further detail, refer to the Environmental and Social Review Summary.

It is expected that a significant benefit of the potential future development of Lydian’s properties will accrue to governments of the host countries in the form of taxes and royalties to different levels of government. The Company will disclose all payments made to governments. On balance, IFC considers the governance risks to realization of project benefits to be reasonable.